Staff at the bus company have been told their jobs are at risk
Bus manufacturer Optare said it could cut up to half of its full-time jobs from a plant in Lancashire because of a fall in orders.
The company, which employs 320 full-time workers in Blackburn, said it had already released all temporary workers it recruited at the peak of production.
Orders for double-decker vehicles have fallen meaning it cannot sustain the present level of staff, said Optare.
A 90-day consultation has started with all staff told their jobs are at risk.
John Fickling, Optare chairman, said the bus company was committed to the double-deck market.
"We are taking appropriate action to mitigate the impact of the current reduced demand for these vehicles so that our business is in a healthy position to maximise opportunities as the market improves," said Mr Fickling.
The company said the Leeds site, where the majority of the group's single-deck products were made, would remain unaffected at this stage.